The curious case of HBD: Algorithm, Decentralised and Unknown
HBD is supposed to be the stable coin on Hive but for a long time, we've struggled to get it right. The recent efforts have been fairly positive, as we manage to get it within range of a dollar but it's still not quite there.
As crypto regulations cast a shadow over the industry, there will be an increasing need for stable coins like HBD. Unlike the most popular stable coins, HBD has unique properties that set it apart and look certain to be huge in the future.
HBD is the real deal
HBD is completely under the radar. It operates on the basis of "if you know, you know" and in the general scheme of things, that's not exactly a good look.
The future of defi and the crypto industry as a whole is going to be heavily reliant on decentralised stable coins like HBD.
HBD is an algorithmically managed stable coin on Hive blockchain. The printing and management of the asset are entirely handled by the community.
It derives value from Hive, as well as the community. HBD is as transparent as they come.
To cap it off, HBD interest rate 12% APR is one of the highest you can find in the entire crypto space. Most other assets offer around 8-10% interest. So how come few people know about this asset?
Centralised Stable coins
I read a publication about the numerous challenges that centralised stable coins like USDT, USDC, and BUSD tend to face. Unfortunately, these are the stable coins with the most volume and are the most popular.
Many people in the know are actually aware of the potential shortfalls that could result from some unexpected regulations falling on them.
FOr example, BUSD of Binance is created and managed by a company that's constantly in the crosshairs of regulatory bodies all over the world. I'm not saying it will happen but what if one day, an attack on BUSD leads to some unwanted negative effect on the asset?
Also, these centralised stable coins are minted, and controlled in secret, how do we even know they're legit? USDT often claims they have collateral, backing, etc. What if it's bullshit? I'm not saying it is but I'm just saying what if?
We need stable coins
There's no doubt about it, we need stable coins in this industry. These assets insulate you from the crazy volatility in the market.
When you don't feel like playing the game, you sell for stable coins and just wait. However, sometimes I wonder if we even have enough stable coins?
HBD doesn't even make the list
I checked coinmarketcap ranking of stable coins and found out that HBD wasn't even mentioned there. It's so bad that nobody even knows about what we're doing here.
Ironically, on that list of Stable coins, there's SBD and that extremely volatile asset is currently trading at slightly over $4. So why is SBD mentioned and HBD isn't?
At the time of writing, there's little data about HBD on coinmarketcap. As one of the most popular crypto data aggregation sites, I'm not exactly sure this is a good look.
As if absence from Coinmarketcap isn't bad enough, there's also no mention of some data on Coingecko. This is particularly damning because Coingecko supported the fork in some way and their plugin is used on popular front-ends like Peakd and Leofinance.
Again, I checked the list of stable coins known by Coingecko and HBD doesn't also make the list. However, it doesn't count SBD like Coinmarketcap, so it is a less silly list.
So let's say we tweet something about HBD being a stable coin and then a random person outside Hive checks one of these two popular platforms and doesn't see HBD mentioned as a stable coin, do you think the person will actually take it seriously?
In summary
There's one parable in the bible that goes something like "it is unwise to light a lamp and then place it under your bed".
If we want to take HBD to the next level, we have to be willing to take it to the next level. Sorting out the algorithm is important and that's been a challenge but at the same time, we need to do the little things as well because, in this industry of tiny margins, they matter.
Many people don't know about HBD because there's little data about it. Cointelegraph wrote a piece about the benefits of decentralised stable coins that mentioned "Magic Internet Money" but didn't mention HBD.
If you look around, virtually all the decentrlised stable coins have some limitation or the other. The biggest of the lot is TerraUsd on Luna and that one has a total market cap of $281,372,307. There's a lot of room for HBD in this space and with the right push, we could at least let more people know about it.
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Yes! The need for stable coins continue to increase by the day. Also, looking at the volatility in this space, stablecoins is what will attract the weak-hearted investors so to say. We the existing users equally need stable coins for our savings. However, HBD doesn't always come to the mind of many when stable coins are mentioned.
This has to change but first we must work at making HBD a stable coin in need before thinking of promoting it to the outside world.
And what needs to be done to make HBD a stable coin internally? Still learning on this front.
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We also need to start accumulating and transacting in HBD. By accumulating, we grow the market cap, making it more difficult to ignore. By transacting in HBD, we legitimize it as a currency. The greatest advantage, using it as a currency, is that there are no transaction fees. If I send you 5 HBD, then you get 5 HBD, not 4.998 HBD. There is great value in that.
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HBD savings will encourage more HBD hodlers. As long as the interest rate continues the way it is there's more incentive to hold and increase marketcap.
I just wonder how we can ensure we keep it stable at $1.
Hive Bonds would encourage a lot more people to invest in HBD in my opinion.
We need to get time locked accounts going.
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Both true point. As stated in my comment, the "chicken or the egg". We need to get a lot more HBD in circulation to enhance the appeal. This will help to develop more HBD uses cases increasing the volume.
Hopefully we start to see more people understanding the concept.
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How do we make sure that HBD stops being underrated. Will more utilities do the work?
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More utility but also needs more attention on it and also should be kept stable.
It starts with each of us doing what we can to get it moving ahead, whatever that is.
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based on what I just read, sounds like an easy solution. print more hdb. convert hive to hbd.
A lot more complicated than that. That is one option but HIVE has other use cases which it might be needed in the future. Wrecking the market cap of HIVE will not enhance it.
We need to grow HBD organically. That is going to require some changes, in my opinion, in infrastructure so that we can create more.
It is going to be interesting to see what happens.
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We need to keep growing it. The use cases have to appear. At the same time, we need a lot more of it.
I have not seen the most recent stats but hopefully a lot more people are using the savings to enhance their HBD holdings. This, in turn, produces more HBD.
We need a lot more of it out there in general before the exchanges will take it seriously. There are only 25 million and a lot of that is locked in the DAO.
It is a chicken or the egg situation. Hopefully some use cases will start to evolve and our HBD transactions increase significantly.
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I would say that HBD's absence on these lists of stablecoins all comes down to a lack of centralised exchange listings.
We have the Hive DAO, so why can't we make these things happen?
As for SBD being on CMC's list, remember that they're owned by Binance, who are always happy to help old friend Justin Sun.
It's not what you know, it's who you know.
Hence Hive, free of well connected VC-backing, continues to receive zero reactions anywhere in the mainstream crypto world.
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